Global macro overview for 05/10/2016:
The PMI Composite data for the Eurozone has been released this morning, and it negatively surprised the market participants. The Final Eurozone Composite Output Index came at 52.6 (Flash: 52.6, August Final: 52.9), and the Final Eurozone Services Business Activity Index was released at 52.2 (Flash: 52.1, August Final: 52.8). The rate of economic expansion across the Eurozone eased to a 20-month low in September. Growth slowed in Germany, Italy, Spain and Ireland, offsetting a mild acceleration in France. "France was the only one of the 'big-four' nations to signal an accelerated increase in economic output in September", IHS Markit reported. In conclusion, it is not good data for the Eurozone economy for the last month, and it will definitely influence the global markets behavior.
Let's now take a look at the EUR/USD technical picture on the 4H time frame chart after the data was released. A marginal new low was made yesterday, but so far, no following action from the bear camp side has been seen. The market is still trading inside of the congestion zone between the technical support at 1.1120 and technical resistance at 1.1254. We are waiting for a breakout.
